Saudi Arabia: Corruption crackdown 'ends with $106bn recovered'

The crackdown was one of MBS's first moves as crown prince and raised questions over his role as reformer.

31 Jan 2019 07:36 GMT

MBS is reportedly under increasing international pressure following the murder of Jamal Khashoggi [Handout/Bandar Algaloud/Saudi Royal Court via Reuters]

Saudi Arabia has ended a sweeping crackdown on corruption ordered by Crown Prince Mohammed bin Salman, also known as MBS, that it said had recovered more than $106bn through settlements with scores of senior princes, ministers and top businessmen.

In a statement on Wednesday, a royal court said authorities had summoned 381 people, some as witnesses, under the campaign launched in November 2017, but it provided no names.

It said 87 people confessed to charges against them and reached settlements that included the forfeiture of real estate, companies, cash and other assets.

The campaign ended as abruptly as it began, despite speculation in the business community that a new round of arrests was imminent.

Some detainees were reportedly tortured, a claim which the authorities have denied.

Critics called it a shakedown and power play by Prince Mohammed. It unsettled some foreign investors that he is courting to diversify the economy away from oil.

The October killing of journalist Jamal Khashoggi by Saudi agents inside the kingdom's Istanbul consulate tarnished the crown prince's reputation in the West and intensified criticism of Riyadh's human rights record and its role in the ongoing war in Yemen.

MBS has defended the anti-corruption campaign as "shock therapy" as he tries to overhaul the economy.

His social reforms, including the easing of restrictions such as bans on cinemas and women driving, have been accompanied by a crackdown on dissent, including the arrests of dozens of Islamic scholars, women's rights activists and intellectuals.

Saudi government wants to 'move on'

Karen Young, resident scholar at the American Enterprise Institute in Washington, told Reuters news agency it was hard to say if the campaign had been successful.

"The good news is that the government seems to be signalling that it wants to move on," she said. "On Saudi foreign policy and domestic politics, particularly towards citizen activists, there is still deep apprehension in the West."

Ali Shihabi, head of the Arabia Foundation in Washington which regularly supports Saudi policy, said the end of the campaign reflected a government attempt to address international criticism of a lack of due process and transparency.

Miteb was freed within weeks after agreeing to pay more than $1bn to settle corruption allegations against him, a Saudi official said at the time.

Two months later, Alwaleed settled after reaching what he called "a confirmed understanding between me and the government". Turki has not been heard from.

Also held were senior officials, including overthrown economy minister Adel Fakieh, who is believed to be in detention, and former chief of the royal court, Khalid al-Tuwaijri.

Top businessmen were held alongside them. Waleed al-Ibrahim and Saleh Kamel were released early on, while others including Amr Dabbagh and Mohammed Hussein al-Amoudi only got out this month. The fate of Bakr bin Laden, released temporarily last week, remains unclear.